Maturity Value

What Does Maturity Value Mean?

Maturity value is the value of an asset once it has reached full maturity. Many life insurance policies have maturity dates, at which point the insurer pays the maturity value to the policyholder. This payout structure is most common with endowment policies, which pay the policyholder a lump sum on a set maturity date if they are still living.

Insuranceopedia Explains Maturity Value

When a person reaches the maturity date of their life insurance policy, the contract typically requires the insurer to pay the death benefit or cash value directly to the insured.

The maturity date for life insurance policies is often set at the policyholder’s 100th or 121st birthday. Since few individuals live to reach this age, the death benefit usually goes to the beneficiary rather than the policyholder. Term policies do not have maturity values because they expire after a set number of years, so only permanent life insurance stays in force long enough for a maturity date to apply.